The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1887-01-07

tered, will lead believe to such successful aud
just adjustment OF the relations that should OBJ
! tain between these corporations and the public
a. IL possible under separate and Independent
state action. The problem cannot, however.
reach solution entirely satisfactory until tho
general government shall supplement state ac-
ttOn by the adoption OF federal policy which
shall have in view the determination of cues
lions relating 10 interstate commerce. The
public sentiment Of the country, with marked
unanimity, is demanding OF congress legislation
to this end 1t remains to be seen how long adj
verse influences shall postpone its enactment
The commissioners recommend such amend
msnts and changes in the law their expert
ence and Investigations have suggested ara
necessary to make 1t more effective. / bespeak
for them your hearty Endorsement, and earn
cstiy invoke your early action respecting the
additional legislation contemplated in the drafte
OF laws they submit for your consideration.
Clearly. in my view, the commissioners should
be authorized TO revise and amend the tariffs OF
the railroad companies respecting rates charged
for trans pertation Of freight and passengers. II
upon complaint, or otherwise. it shall appear to
the commission. after careful investigation, that
such rates are in any respect "unequaL unjust
or unreasonable" iC should be authorized TO re-
quire and compel such changes as shall make
them equal, reasonable and just. There can be
no good ground OF objection to this regulation
upon the part of the companies themselves. In
deed, they should rather wish to see it estsb-
Hshed, as the process Of its enforcement would
give opportunity 1or such vlndicalion OF their
equitable policy respecting the lublic as the
facts In each case would warrant.
The excessive and fictitious capitalization Of
the property OF railway companies is o proper
subject for legislative consideration. 1t is mo-
torfously the practice OF these companies, after
realizing from the sale of their bonds money
sufficient to build and equip their lines, to issue
In addition stock TO an equal or greater amount,
representing as rule no value whatever, bat
appropriated gratuity by the syndicate
controlling the franchises Of the company. To
give these false issues of securities real value.
dividends mnst be earned by the road and paid
thereon. The practical effect of this Is the perpe-
tration OF fraud upon the public. Rates OF trans
ffzEx AivAA
net earnings sufficient To pay these dividends
after fixed charges are met. As q rule, IL COM
plant is made that rates are high aud that COM
modities will not bear cost OF transportation.
the company responds that IL Is charging only
what is necessary to earn fair income upon its
investment. and. perhaps. refers to its sworn
statements made to the board Of commissioners
as to the amount Of such investment, which al
ways includes such oSerissue OF securities
This practice does not require elaboration to ex-
pose its oppressive and dishonest character, but
1t loudly calls for a remedy. TIE drafts Tor acts
propoposed by the commissioners, to prohibits
the Issuing OF false, fraudulent, and art-pzid
or unpaid shares of stock OF railroad cou-
panies." and to regulate the proceedings Of
railroad companies desiring to increase their
capital stock, will protect the pubic against
growth OF the evil. The evident remedy, as re-
CARDS existing corporations. is an adjustment
OF their revenues and dividends upon the basis
OF fair aud liberal estimate OF the actual cost
or value OF their properties
The incorporation into the fundamental law of
the state of an amendment asserting the full
power OF the state as to corporate control is .
recommendation Of the commissioners in which
cordially concur. Though this principle II
sustained by the courts it Is not wholly admit
ted by the corporations As an authority COM
ing from the constitution IL would command &C
quiescsnce.
The lsbors of the board under the law for the
regulation Of warehouses and the inspection OF
grain have resulted in the Inauguration of q sys-
TEN OF state inspection and weighing which has
worked most satisfactorily. The grades estab-
lished and rules adopted by the board for tho
HANDLING nj grain have had he affa RI
the cause for much OF the complaint that had
existed among formers and country shippers, VI
irregularities and abuses respecting the disposi-
ton OF their property. Minnesota grades Of
wheat are tho now recognized standard in East
ern and European markets. and the integrity OF
state inspection commands the full conf
dence Of the trade. Undoubtedly the adoption
of this system has added appreciably to the
market value OF our wheat, and resulted In real
have received under the old order OF thinga
The grades aud rules Of inspection as first es-
tabished proved SO satisfactory that any change
In them was generally objected 70 by farmers
and dealers at the commencement of the pres
emit crop year.
Some amendments to the law correcting i'm
projections. widening its scope and extending
country elevators and warehouses. are recon-
mended by the board.
The successful results achieved under the rail-
road and warehouse laws have been largely
due to the ability. INDUSTRY and aptitude FOX
their work of the commissioners, that feel they
have canned the thanks Of the people of
the state They have secured conces-
sions from the railroad companies greater than
have ever been accorded to any state railroad
commission in the country, and they have in
which Is being quoted and copied as o model I'm
some of the older states. -. T
There are now in operation 1900 miles Of
railroad in the state, an increase OF 73S miles In
SI4sI. - -''' ~''
The earnings of these roads were as follows:
Gross .s22 617l 100 II Sos. 40 70
Net: ll'4'e.se2 es lsoe4oS2 IS
state. ............... e11.74s IS sl2,51 "a
RESUME. ..r-....
During the five years it has been my privilege
to occupy the executive office Minnesota has
experienced development unprecedented in
her history, and hardly eQualed by that Of any
other community of the country for like period
OF time. Her gSowth in population has been
nearly 60 per cent, and her assessed real and
In 1891 to $45S. 424, TIT in 1886 The indus
tries and business interests OF her people have
kept pace in their development with this growth
In population and wealth, and the foundations
have been broadened and strengthened for that
greatness of empire which is the abundant
promise Of our future destiny. A brief reference
to the measures and policy that have specially
characterized the administration Of her public
interests during this period may not be regarded
ont of place in this connection.
SO rapid q growth has necessarily involved
largely increased expenditures in the mainte-
nance Of the several departments Of the state
government and In the enlargement and support
Of her state institutions. Extraordinary ex-
penditures have also been cccasioned by tie ne
eessity Of replacing public structures destroyed
prison and the first hospital for the insane. EI-
Penditu;es for permanent public improvements
the past five years have exceeded in the aggre-
gate $1,000, 600. The interest also upon the
our present state debt first became q
burden upon the treasury in 1882. But not
upon the state treasury they have been promptly
met and the public debt considerably reduced
without adding TO the burdens of the people In
the way of taxation: in fact, there has been paid
as taxes to the state less than was paid during
either Of the two periods OF Eve years inn
nediateiy preceding. The AVERAGE for the five
annum. for tho five years ending with 1881
S473, 50 and for the i've years ending with
1886 $44s,6lI97. This in view Of the enor-
would further show largely diminished rate OF
taxation. The averaged rate for the first period
named was 2S-1O0 mills per annum and for
made possible mainly by largely AUGMENTED
revenues Of the state from other sources, especi-
ally receipts from railroad and insurance com:
from S. 27S. OIL ~ in 1881 to So, sol, 637 IA In
1886. These additions are the proceeds OF the
sale OF land and pine .tumpage 6elongina to the
been realized rs profit on the sale and exchange
OF securities held by these funds. Recent I'm
vesttnent, OF tnese IunQs nave been IN the bonds
Of the State Of Tennessee which have largely in
creased in value since their purchase and IL sold
at the price at which the last purchase was
made q further profit Of $l94, $40 would be re-
allied.
As an agency in the line Of public reform and
In public expenses the state board
OF corrections and charities was organized in
1885. Its efficiency 10 this service has been
Bhswn in the improved methods adopted
through its instrumentality in many OF the
counties OF the state, In the administration OF
their local institutions and the decrease in cost